Taxing Agricultural Income: Good Economics, Bad Politics?
Should farm income be taxed? That is at the centre of a fresh debate after NITI Aayog Member, Bibek Debroy, in a press conference, argued that the government should "tax the rural sector, including agriculture income above a certain threshold". It has been spoken of in the past but is clearly a politically sensitive subject. Does it make good economics? Opinion is divided given the vast numbers - up to 90-95% of the farmers will not make it to this tax bracket - so is there anything to gain?
